(Sharecast News) - Medical device company Creo Medical said on Wednesday that 2023 was "a pivotal year" for the firm, with new products supporting "strong growth" and leading to a double-digit jump in group revenues.
Creo expects to report 13% growth in group revenues to £30.8m, while underlying operating costs were reduced by 10% to £3.7m through "tight cost control" and gross margins across the group improved from 48.3% to 49.6% through supply chain management and increasing sales volumes.
The AIM-listed group said "materially reduced operating costs" had contributed to a reduced underlying loss of £16.4m, down from £20.8m) a year earlier. Creo also noted that due to changes to the UK R&D tax credit scheme during the year, tax credits were more than £2.0m lower than anticipated. Without this change, the company's underlying loss would have been under £14.5m.
Creo added that the improved revenues, margin expansion, conversion of inventory to cash, and lowered operating costs improved net cash burn, with cash and equivalents as at 31 January 2024 sitting at £22.8m, up from £13.1m a year earlier. The group also stated it remains on track to reach cash flow break-even as planned.
As of 1145 GMT, Creo Medical shares were down 6.29% at 38.66p.
Reporting by Iain Gilbert at Sharecast.com
Creo Medical (CREO)